02032026 V2 Presentation WR.pdf
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City Council Meeting: Utility Rate Notice of Intent Terry Lowe, Water Resources Director Jared Askelson, Deputy City Manager February 3, 2026 Tae oN buckeyeaz. GOV Timeline ¢ Citizen Water & Wastewater Rates Committee (WRC) ¢ July -September 2025: Bi-Weekly Meetings o Public Outreach Approach o Deep Dives into each Utility’s Operations & Asset Demands o Utility Rate Structure Analysis o Comparisons to other Utility Providers o Utility Rate and Enterprise Fund Analysis o Recommendations * Oct. 9, 2025: Voted on Recommended Rate Cycle, Structure, Fees Pa BU heen Timeline * October 2025 ¢ Media campaign ¢ EOB, social media, informational flyers ¢ November 2025 * Community Outreach Meetings Held ¢ Rate Discussion Videos Released ¢ December 2025 * Meetings with HOAs Poa ee Next Steps * Today: Council to adopt notice of intent ¢ April 7**: Council to adopt rates ¢ May 13%: New rates go live Pa~ BUCKEYE Next Steps * Today: Council to adopt notice of intent ¢ April 7**: Council to adopt rates ¢ May 13%: New rates go live Pa~ BUCKEYE Today’s Agenda * Recommended Rates & Impacts ¢ Comparisons ¢ Bills ¢ Other Municipalities ¢ 1/20/2026 Council Workshop Follow Up Tan? NN BUCKEYE Recommendations Pa Recommendations * Gradualism * Rate changes will be steady and incremental * Four-year rate plan ¢ WRC had recommended five-year plan ¢ New rate structure ¢ Incentivize conservation ¢ Fairness to customers Pa BUCKEYE Water Base Rate Recommendation Current Base Rates Residential and Landscape - Proposed Base Rates $35.99 $29.65 $22.17 3/4” $30.02 $31.30 $32.63 $34.01 $35.99 $86.61 $60.06 1” $33.36 $34.77 $36.25 $37.79 $35.99 $86.61 $60.06 1.5” $66.51 $69.34 $72.29 $75.36 $35.99 $225.92 $160.19 2” $106.46 $110.98 $115.70 $120.62 $35.99 $225.92 $160.19 3” $213.12 $222.18 $231.62 $241.46 $35.99 $420.94 $300.36 4” $332.96 $347.11 $361.87 $377.25 $35.99 $699.53 $500.59 6” $665.73 $694.02 $723.52 $754.26 $35.99 $1,396.00 $1,001.18 8” $1,065.20 $1,110.47 $1,157.67 $1,206.87 $35.99 $1,396.00 $1,001.18 10” $1,531.39 $1,596.47 $1,664.32 $1,735.06 *Current rates include $3.05 Replacement Fee for Residential and Potable Landscape 9 Ta? oN Le Water Base Rate Recommendation Current Base , Commercial - Proposed Base Rates Rates Commercial / $37.40 3/4” $70.20 $73.18 $76.29 $79.53 $111.04 1” $78.00 $81.31 $84.77 $88.37 $111.04 1.5” $155.53 $162.14 $169.03 $176.22 $290.85 2” $248.94 $259.52 $270.55 $282.05 $290.85 3” $498.35 $519.53 $541.61 $564.63 $542.68 4” $778.59 $811.68 $846.17 $882.13 $902.43 6” $1,556.71 $1,622.87 $1,691.84 $1,763.74 $1,801.80 8” $2,490.82 $2,596.68 $2,707.04 $2,822.09 $1,801.80 10” $3,580.94 $3,733.13 $3,891.78 $4,057.18 *Current rates include $3.05 Replacement Fee 1 O Pa BUCKEYE Water Usage Rate Recommendation Residential Usage Rates 0-6k (98.5%)* $3.93 $4.77 $4.97 $5.18 $5.40 6,001— 10k (.6%)* $4.91 $5.96 $6.22 $6.48 $6.76 10,001 —20k(.84%*) $6.14 $7.45 $7.77 $8.10 $8.44 20,001 -30k (.03%)* $7.68 $9.69 $10.10 $10.53 $10.98 30,001+ (.04%)* $9.59 $12.60 $13.13 $13.69 $14.27 * percentage of bills **prior structure 1 1 Pa BUCKEYE Water Usage Rate Recommendation Potable Landscape Usage Rate 0 -50k (75%)* $6.61** $7.02 $7.32 $7.63 $7.96 50,001+ (25%)* $7.93** $8.78 $9.15 $9.54 $9.94 Non-Potable Landscape Usage Rate Proposed Current Per Thousand Gallons $3.30 $4.77 $4.97 $5.18 $5.40 * percentage of bills **prior structure 1 2? Water Usage Rate Recommendation Commercial Usage Rate 0- 10k (50%)* $8.08 $9.45 $9.86 $10.27 $10.71 10,001 - 30k (20%)* $8.08 $9.93 $11.09 $11.56 $12.05 30,001 - 50k (8%)* $8.08 $9.93 $12.47 $13.00 $13.55 50,001+ (23%)* $8.08 $9.93 $12.47 $14.63 $15.25 * percentage of bills **prior structure 1 3 P-—ay BUCKEYE Water Monthly Impact Current 9 . % Change Residential 1” Meter, 6K/month usage $59.57 $61.98 4.0% $64.61 $67.36 $70.22 Commercial 1” Meter, 15K/month usage $232.24 $222.19 -4.3% $235.32 $196.80 $205.15 Commercial 2” Meter, 20K/month usage $452.45 $442.78 -2.1% $468.98 $334.05 $348.23 Landscape 2” Meter, 20K/month usage $358.12 $246.89 -31.1% $257.38 $268.32 $279.73 Landscape 2" Meter, 500K/month usage $4,124.92 $4,407.14 6.8% $4,594.44 $4,789.71 $4,993.27 Non-Potable 2” Meter, 150K/month usage $655.19 $821.96 25.5% $856.89 $893.31 $931.28 ofuasetlaee 2” Meter, 800K/monthusage $6,754.85 $8,188.18 21.2% $10,181.78 $11,682.15 $12,177.23 14 Poa~ BUCKEYE Wastewater Base & Usage Rate Recommendations Residential Base Rate Current 2027 (per Meter | (perMeter Size) | <1” (99.95%) $28.86 $39.44 $42.20 $45.15 $48.31 a aac gallons) $2.00 Current 2027 (per Meter iii s $19.12 $43.50 $46.55 $49.80 $53.29 1” (37%) $60.06 $72.65 $77.73 $83.17 $88.99 1.5” (11%) $60.06 $144.86 $154.99 $165.84 $177.45 2” (48%) $160.19 $231.86 $248.08 $265.45 $284.03 3” (1.5%) $160.19 $464.15 $496.64 $531.40 $568.60 4” (1.68%) $300.36 $725.15 $775.91 $830.22 $888.33 6” (.55%) $500.59 $1,449.86 $1,551.34 $1,659.94 $1,776.13 Fcommussgerate Tt (per thousand gallons) $2.51 $4.00 $5.00 $5.72 $6.13 1 5 Poa BUCKEYE Wastewater Monthly Impact Current to 2026 1” Meter, any usage $36.86 $39.44 7.0% $42.20 $45.15 $48.31 1” Meter, 15K/month usage $97.71 $132.65 35.8% $152.73 $168.97 $180.95 2" Meter, 20K/monthusage $210.39 ~—«$311.86 48.2% $348.08 $379.85 $406.64 MRecmeriae 2” Meter, 800K/month usage $2,168.19 $3,431.86 58.3% «$4,248.08 $4,841.45 $5,188.35 *Assumes: Base + Usage Rate of 4 kgal usage 1 6 Pa BUCKEYE Recommended Bill Comparisons Residential Bill Totals 1" Meter, 6K Water, 4K Wastewater Water Base $32.94 $33.36 Water Consumption $23.58 $28.62 Sewer Base $28.86 $39.44 Sewer Consumption $8.00 $0.00 Garbage and Recycling $25.53 $25.53 Environmental Fee $5.00 $5.00 Repair & Replacement Fee $3.05 $0.00 Sales Tax $6.01 $7.64 AZ Water Quality Tax $0.04 $0.04 Bill Total $133.01 $139.63 Dollar Amount Increase $6.62 Percentage Increase 5.0% 17 Tae ON Bites Recommended Bill Comparisons Commercial Bill Totals 1" Meter, 15K Usage Water Base $107.99 $70.20 Water Consumption $121.20 $144.15 Sewer Base $60.06 $72.65 Sewer Consumption $37.65 $60.00 Environmental Fee $5.00 $5.00 Repair & Replacement Fee $3.05 $0.00 Sales Tax $22.06 $20.40 AZ Water Quality Tax $0.10 $0.10 Bill Total $357.11 $372.50 Dollar Amount Increase $15.39 Percentage Increase 4.3% Pa BUCKEYE Recommended Bill Comparisons Commercial Bill Totals 2" Meter, 20K Usage Water Base $287.80 $248.94 Water Consumption $161.60 $193.80 Sewer Base $160.19 $231.86 Sewer Consumption $50.20 $80.00 Environmental Fee $5.00 $5.00 Repair & Replacement Fee $3.05 $0.00 Sales Tax $42.54 $41.64 AZ Water Quality Tax $0.13 $0.13 Bill Total $710.51 $801.37 Dollar Amount Increase $90.86 Percentage Increase 12.8% Pa BUCKEYE Recommended Bill Comparisons Commercial Bill Totals 2" Meter, 800K Usage Water Base $287.80 $248.94 Water Consumption $6,464.00 $7,939.20 Sewer Base $160.19 $231.86 Sewer Consumption $2,008.00 $3,200.00 Environmental Fee $5.00 $5.00 Repair & Replacement Fee $3.05 $0.00 Sales Tax $628.67 $761.96 AZ Water Quality Tax $5.20 $5.20 Bill Total $9,561.91 $12,392.16 Dollar Amount Increase $2,830.26 Percentage Increase 29.6% Pa BUCKEYE